Efforts are underway to build a 40-unit housing project in Yuba City for homeless and mentally disabled individuals from the area. The Regional Housing Authority is currently seeking funding for the project and has requested a loan of up to $850,000 from city officials.
Yuba City Council members will discuss whether or not to award the deferred loan to assist with the affordable housing project at today’s meeting.
The Richland Permanent Supportive Housing Project, also known as New Haven Court, would include both studios and one-bedroom apartments, case management offices for individualized supportive services, as well as on-site amenities like a community room with kitchen, exercise facility and a business center. The project is proposed to be located at 448 Garden Highway.
The Regional Housing Authority is applying for federal low-income housing tax credits through the California Tax Credit Allocation Committee (CTCAC) to help pay for a majority of the project, estimated to cost more than $11 million. A loan from the city would help with that request.
“(CTCAC) encourages local government agencies to provide financial assistance to aid in the development and construction of low-income rental housing, and it is expected that the loan from the city will provide the public leverage needed to be more competitive for a tax credit allocation,” said Darin Gale, interim director of Development Services, in a staff report.
Yuba City Council members will consider awarding the deferred loan to be paid back using residual revenue – or net revenue remaining after all other expenses have been paid – with a 3 percent simple interest rate over a term of 55 years.
Staff is recommending the funding for the loan come from the city’s Low-Mod Housing Asset fund ($650,000) and the Home 2 Families Capital and Maintenance Account ($200,000). If the Regional Housing Authority is successful in obtaining $450,000 in Homeless Emergency Aid Program Funds through the Sutter-Yuba Homeless Consortium, then the city’s loan amount would be reduced to $400,000.
Sutter and Yuba counties have committed more than $2.5 million to the project – through the No Place Like Home and Mental Health Services Act funds.
Gustavo Becerra, executive director of the Regional Housing Authority, said his team will be submitting its application to the CTCAC on March 4.
If funding is secured, construction on the project is estimated to begin in December. The work would likely take 12 months to complete.
Council will discuss the loan at Tuesday’s meeting starting at 6 p.m. inside Council Chamber at City Hall – 1201 Civic Center Blvd., Yuba City.